India issued a warning on Thursday regarding a US sanctions bill that authorizes tariffs of up to 100% on the five largest buyers of Russian oil. This warning came shortly after the US House of Representatives passed the legislation, which is now awaiting President Donald Trump’s approval. Indian officials indicated that such sanctions could negatively impact both the bilateral relationship between India and the US, as well as the global energy market.
But once signed, it gives Trump a durable, congressionally authorised tool to penalise buyers of Russian energy — distinct from the executive tariff powers that have faced legal challenges, including a Supreme Court ruling in February that struck down the use of the International Emergency Economic Powers Act for trade duties. “Today is a big day. The bill does not compel tariffs.
The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 cleared the House on Wednesday by 262-159 margin, after passing the Senate 86-11 on August 7. It grants Trump the authority to impose tariffs of up to 100% on goods from the five largest purchasers of Russian crude oil and natural gas — a list that, by current import volumes, includes China , India, Slovakia, Hungary and Azerbaijan.
“The President plans to sign the bill,” a White House official told news agencies, but did not specify a timeline for the signing. Congress has just sent an unmistakable message to Putin,” said Senator Jeanne Shaheen, who played a central role in backing the legislation.
The statement reiterated India’s position that its energy purchases are guided by national interest. India has in recent months increased purchases of energy from the US and Venezuela as part of efforts to diversify, but Russia remains its largest source of crude oil. The bill does not name any country as a target. The president can waive tariffs on any country by certifying to Congress that the waiver serves the national interests of the US. The passage of the bill came after members of the majority Republican party brought the legislation to a vote this week after prolonged uncertainty. Only a week ago, the bill’s fate was thought uncertain amid divisions in both the Republican annd Democratic parties over handing Trump expanded tariff authority ahead of November’s midterm elections.
Russia supplied 51.1% of India’s crude imports in July, according to the Global Trade Research Initiative (GTRI) — more than the UAE, Saudi Arabia, Venezuela, Brazil, Oman and the US combined. Instead, it uses a formula: the US Trade Representative, in consultation with the Secretary of State and Secretary of Energy, will identify the five largest importers of Russian crude and gas by total volume over the preceding 12 months, with the list reassessed every 180 days. The tariff rate, up to the 100% ceiling, is set at the president’s discretion. A separate provision authorises tariffs of up to 500% on goods imported directly from Russia. The House Rules Committee allowed the bill to progress on Monday, and on Tuesday the House narrowly voted 214-211 to schedule a final Wednesday vote after two Democratic lawmakers unexpectedly crossed the aisle to support the measure.
India’s external affairs ministry said in a statement that the government was determined “to take all necessary measures to protect its trade and economic interests” and would work closely with trade and industry bodies to deal with the fallout. New Delhi has discussed the bill “at high levels in recent months with various US interlocutors,” the ministry said, adding that India had “very clearly articulated” the potential implications — “for not just the bilateral relationship but also the international energy market. “India remains firmly committed to ensuring energy security for its 1.4 billion people,” the ministry said, adding that the country would continue sourcing energy through “diversified sourcing and on the basis of evolving market dynamics. The legislation includes an exemption for countries whose Russian natural gas imports account for less than 15% of Russia’s total gas exports and that are “taking significant steps” to reduce those imports — a provision that would shield several European nations but does not extend to oil purchases and does not cover India or China. To permanently lift them, he must certify that the country has stopped purchasing Russian energy and has provided “reliable assurances” it will not resume.
Though leaders from both countries have said they have agreed on most elements of the deal, it is yet to be signed. The White House’s role in securing passage remains unclear. But recent reports in US media indicate the White House may have played a key role in pushing the bill through by persuading opposition Democratic lawmakers to vote for it. India’s purchases of Russian crude have been a persistent irritant in the bilateral relationship. Washington itself granted a series of general licences temporarily allowing countries including India to resume Russian purchases to cover the shortfall. Trump has repeatedly threatened tariffs on countries purchasing Russian oil as his frustration grows over his inability to end the war in Ukraine. Russia and Ukraine have intensified long-range air strikes in recent weeks as the front lines remain largely static.
India scaled back Russian oil imports under US pressure through much of 2025, but the widening conflict in West Asia and the effective closure of the Strait of Hormuz forced New Delhi to seek alternative supplies. India’s Russian crude imports subsequently surged 34% month-on-month to record levels in June 2026, valued at €4.5 billion, making India the second-largest buyer behind China, according to the Centre for Research on Energy and Clean Air. The bill’s 12-month lookback period for identifying the top five purchasers would capture that surge. India-US ties fell to their lowest point in more than two decades after Trump imposed 50% tariffs on Indian exports last year. The two sides reached an understanding in February to slash tariffs to 18% as they worked towards a bilateral trade agreement.
Last month, US Ambassador Sergio Gor said Trump’s support for the bill had been muted even as legislators sought to give him expanded tariff authority. Ajay Srivastava of the Global Trade Research Initiative said Washington could use the tariff threat to pressure India into reducing Russian oil purchases and accepting an unequal trade agreement. “India should protect its energy security and continue buying Russian crude while it remains commercially competitive,” he said. India’s ambassador to Russia, Vinay Kumar, has previously called US tariffs imposed over Russian oil purchases “unfair, unreasonable and unjustified,” pointing out that other countries, including European nations, also trade with Russia.
